Case Study Analysis

Running head : CASE STUDY ANALYSIS

Case Study Analysis

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Abstract

The market segment of drug products is extremely vulnerable , and greatly depends on the state of advanced research and the research capabilities of the companies within this marketing niche . Yet , price is not a rare obstacle against successful promotion of the discussed products . The is aimed at analyzing the case study of Burroughs Wellcome Company and its product Retrovir

Case Study Analysis

Introduction

We are used to the thought that

the market of drugs is extremely susceptible to the state of medical research . It is absolutely true , as the appearance of new medical preparations changes the balance of market forces towards this or that company . However , it appears that in this case pricing plays not the least role . The case becomes even more complicated , when one speaks about antiviral medical treatments especially in terms of HIV / AIDS . When the company explores the market and creates a revolutionarily new medical treatment , does this mean it has the right to exercise any price possible to pay off the costs ? In other words , how do drug companies regulate their profit margins , and offering a unique product does this mean that the company is at the edge of maximizing its profits

Nature of the industry , market , and buyer behavior

We are speaking here about the market of drugs , and particularly antiviral drugs . The analyzed Burroughs Wellcome PLC is the single producer of the medical preparation called Retrovir , having become one of the basic medical tools in inhibiting the development of HIV cells in HIV patients . The nature of industry structure can be briefly characterized as being highly competitive . The major factors contributing into the level of competition between the drug companies are the prices for similar products , and the research capabilities of the companies within one drug niche . The company is capable of possessing more competitive position towards other drug companies in case it can offer a new product , in compliance with the major medical and safety requirements for reasonable price , and being widely available

Speaking about Burroughs Wellcome Company and its product Retrovir , it should be noted that the roots of its development and marketing go back to the time when people were still searching for possible HIV treatments . It is even more important to remember that Retrovir was not the first attempt to create such product during the period of 1984-1989 the consumers were already familiar with the drugs named DDI ' and produced by Bristol Myers corporation . Compared to Retrovir , DDI produces less toxic side effects , but was also less effective in treating HIV . During the 1980s the market was already becoming extremely segmented after the HIV cells were identified , as well as their major characteristics . DDC , developed by Hoffman-LaRoche , was in clinical trials in 1989 . Other drugs produced by Glaxo and Triton Biosciences Inc . were being tested , too . Industry analysts believed that one or more of these drugs would obtain FDA approval for prescription...